Nope you don't need to adjust the squelch, you can put the squelch level at 4 or where ever you want.
If you want that OPEN squelch to go away by itself after every page call. In the software under the MODEL OPTION tab, above the squelch level you will see it says: RESET FUNCTION, set that to AUTOMATIC, and after you do this just reload the pager and you should be all set to go. And what this does, instead of having it set to MANUAL, where you have to push the reset button on the side of the pager to stop that open squelch from staying open after every page call you get. Automatic does it by itself. It resets the pager all by itself, so once the page call is done that open squelch will go away right after the page call is done.
So if you do this. That should help you get rid of that open squelch you get after every page call.
Hope this helps.